Accounts Receivable is a(n) ________ account and has a normal ________ balance. A) liability; debit B) asset; debit C) liability; credit D) asset; credit ANSWER B
Date: September 2nd, 2020
Under cash basis accounting, an expense is recorded only when cash is paid. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
At the time the transaction occurred, which of the following would result in an increase in net income under the accrual basis of accounting, but would not result in an increase in net income under cash basis accounting? A) purchase of supplies for cash B) performance of services on account C) use of supplies purchased […]
Date: September 2nd, 2020
Generally Accepted Accounting Principles (GAAP) require the use of accrual basis of accounting. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Accounts Payable is a(n) ________ account and has a normal ________ balance. A) liability; debit B) asset; debit C) liability; credit D) asset; credit ANSWER C
Date: September 2nd, 2020
Which of the following accounts increases with a debit? A) Cash B) Interest Payable C) Accounts Payable D) Common Stock ANSWER A
Date: September 2nd, 2020
Cash is a(n) ________ account and has a normal ________ balance. A) asset; debit B) liability; credit C) liability; debit D) asset; credit ANSWER A
Date: September 2nd, 2020
Which one of the following account groups will decrease with a debit? A) assets and expenses B) revenues and expenses C) liabilities and revenues D) assets and liabilities ANSWER C
Date: September 2nd, 2020
When does a company account for revenue if it uses cash basis accounting? A) when services are performed, even though cash may be received at a later date B) when cash is received after the service is performed C) when the services are being performed D) when cash is received, either prior to, at the […]
Date: September 2nd, 2020
If a company is using accrual basis accounting, when should it record revenue? A) when cash is received, even though services may be performed at a later date B) when services are performed, even though cash may be received at a later date C) when services are performed and cash is received D) when cash […]
Date: September 2nd, 2020
